US Visa Focus 1100x650

US Citizenship and Immigration Services (USCIS) of the Department of
Homeland Security (DHS) has proposed a significant increase in immigration filing
fees, affecting various forms and applications. The DHS posted the proposed rule in
the Federal
Register
in January 2023. The proposed rule aims to help the agency offset
operational costs, improve customer service operations by reducing case processing
times, and maintain timely case processing to prevent future backlogs.

The changes come as USCIS struggles to handle the influx of asylum seekers and the
impact of USCIS closures during the COVID-19 pandemic, which have strained their
resources. Because of previous delays, including a 2020 proposed rule blocked by US
courts, the current fee schedule dates back to 2016. Revenue raised from fees, which
primarily fund the agency, is insufficient to cover the operating costs and
federally mandated pay raises the agency faces.

How significant are the fee increases from US citizenship
and immigration services?

The cost impact of the new fee structure is quite significant. Many applicants will
face steep fee increases. For example, for I-485 applicants, the proposed fee
increase will raise the cost of filing Form I-485 (Application to Register Permanent
Residence or Adjust Status) from $1,225 to $1,540. Applicants requesting employment
or travel benefits or those with children applying at the same time will also see
significant increases.

The proposed rule introduces significant changes as well, such as integrating the
biometric services fee with the main benefit fee and requiring separate filing fees
for Form I-131 and Form I-765 when filed with an adjustment of status (Form I-485).
The agency plans to shift the burden of costs onto those who can afford it while
decreasing some fees or providing fee exemptions for individuals less likely to
afford them, such as asylum seekers applying through the USCIS asylum program and
victims of human trafficking or other crimes.

Who will feel the effects of the USCIS filing fees
increase?

Eliminating the No-Cost EAD and Advance
Parole

USCIS plans to stop waiving fees for adjustment of status applicants seeking
employment authorization (Form I-765) or a travel document (Form I-131) with a
pending I-485 application. The new fee schedule would charge separate fees for
Forms I-485, I-765, and I-131, drastically increasing
the cost for individuals adjusting their status to permanent resident. The total
cost will rise to $2,820—a 130% increase.

Eliminating the I-485 discount for
children

The proposed rule removes the reduced fee for children filing Form
I-485
with a parent. Children must pay the same fees as adults under
the proposed rule, representing a 105% increase over current fees.

Increased fees for family-based immigrant visa petitions

The proposed fee increase will also affect family-based immigrant visa petitions.

The fee for Form I-129F (Petition for Alien Fiancé)
will increase by 35% to $720.
Form I-130 (Petition for Alien Relative) fees will rise
by 53% to $820, making it more expensive for US
citizens to sponsor family members for a green card.

Citizenship fee increases
moderately

The fee for Form N-400 (Application for Naturalization) will increase
to $760
, a 5% increase. However, because the biometric service fee
will be part of the USCIS filing fee, applicants aged 75 and older will see an
effective fee increase of 19%.

Maintaining a Green Card will be less expensive, but
Conditional Residents application fees will rise

Permanent residents will see a decrease in the fee to file Form I-90
(Application to Replace Permanent Resident Card)
, with the cost
dropping from $540 to $465.

However, conditional residents filing Form I-751 (Petition to Remove
Conditions on Residence)
will experience a significant fee increase,
rising from $680 to $1,195.

How will the proposed fee increase impact
employers?

The proposed rule will significantly impact employers that sponsor foreign workers.
The proposed fees may affect recruitment and retention strategies, business
processes, and overall business operations. Employers should carefully consider how
these changes affect their budgets and operations and make necessary adjustments to
remain competitive in the global talent market.

Employers will feel the effects of the new fees in several ways, as the steep fee
increases affect many forms and applications relevant to their operations.

Here are the key ways that the proposed fees will impact employers:

Higher costs for sponsorship

Employers who sponsor foreign workers for employment-based visas , like the H-1B,
L-1, and O-1, will face higher costs due to the increase in filing fees. The
proposed fee increase will affect employers sponsoring new visa applicants and those
seeking to extend or adjust their current visas. Employers may need to reassess the
financial feasibility of sponsoring foreign workers or consider absorbing the
additional costs.

Impact on recruitment and
retention

The new fee rule may make it more difficult for employers to recruit and retain
foreign talent, especially if they pass on some or all of the additional costs to
the employees. The increased costs could hinder their hiring and retention of
skilled professionals, affecting their business growth.

Adjustment of status costs

Employers that assist employees in adjusting the status process (from a nonimmigrant
visa to permanent residency) will face higher costs due to the increase in Form
I-485 filing fees. The separate filing fees for Form I-131 (Application for Travel
Document) and Form I-765 (Application for Employment Authorization) in conjunction
with Form I-485 will also increase the overall cost for employers supporting the
adjustment of the status process.

Green Card sponsorship

Employers sponsoring foreign nationals for green cards may see higher costs due to
the increased fee for Form I-130 (Petition for Alien Relative). If employers choose
to pass these fees onto their employees, it could discourage some potential
applicants from pursuing permanent residency.

Consideration of alternatives

Due to the higher fees, employers may consider alternative visa categories that are
less expensive or consider focusing on hiring US citizens or permanent residents to
avoid the increased costs altogether.

Budget adjustments

Employers with many foreign employees may need to adjust their budgets to
accommodate the higher fees. The higher costs could result in companies delaying or
canceling other strategic business plans, such as hiring or expansion plans.

Impact on small businesses

Smaller companies with fewer resources may be particularly affected by the increased
fees, as they may need help to absorb the higher costs of sponsoring foreign
workers. The higher prices could affect their competitiveness in attracting and
retaining global talent.

Nonimmigrant fees would increase for many
categories

Until now, the Form I-129 filing fee across all visa classifications was $460. The
Form I-129 fee change would affect all categories, including H-1B, H-2A/B, E, L-1,
O, P, and TN.

In the new rule, the USCIS proposes charging different fees for each visa
classification.

  • H-1B fees would increase by 70% to
    $780.
  • L-1 petition fee would increase by 201% to
    $1,385.
  • E and TN petitions would increase 121% to
    $1,015.

The USCIS also proposes to increase H-1B electronic registration
fees
to $215 per registration from $10.
That is a 2050% increase.

According to the agency, the fee hike results from a review of the cost of
administering the H-1B registration system. But, overall, the new fee structure also
aims to prevent misuse of the immigration and asylum program.

Steep increases proposed in EB-5
fees

The proposed rule would also significantly increase filing fees for EB-5 immigrant
petitions.

  • Form I-526 and Form I-526E fees (Immigrant
    Petition by Alien Entrepreneur/Regional Center Investor) would increase 204% from
    $3,675 to $11,160.
  • Form I-829 (Petition by Investor to Remove
    Conditions on Permanent Resident Status) would increase 148% from $3,835 for most
    applications to $9,525 for those that require
    biometrics.

No increase to premium processing
service

  • The I-907 Request for premium processing for
    form I-129 requesting E-1, E-2, E-3, H-1B, H3, L
    (Including blanket L-1), O, P, Q, or TN nonimmigrant classification; or
    form I-140 requesting EB-1, EB-2, EB-3 immigrant visa
    classification would remain unchanged at
    $2,500
    .
  • The I-907 Request for premium processing for
    form I-129 requesting H-2B or R nonimmigrant
    classification would still be $1,500.

There is also a concern that the proposed rule might increase administrative costs
for employers wishing to file applications before any fee changes take effect.

USCIS fee increase by form for family-based immigrant
applications

The proposed fee increase affects most forms, though some forms had no change and a
few saw a slight reduction. The Federal
Register
has a full list of present and proposed fee increases and changes
in Table 1 of the Proposed USCIS rule.

Below is a partial list of the proposed fee changes for some of the most commonly
used family-based USCIS forms.

Current and proposed fee schedule

Form | Type | Current Fee | New Fee | $ Change | %
Change

Form I-90 | Replace Permanent Residency Card (with
Biometrics) | Current Fee $540 | New Fee $465 | Decrease $75 | -14%
Form I-129F | Alien Fiancé(e) | Current Fee $535 | New
Fee $720 | Increase $185 | 35%

Form I-130 | Alien Relative | Current Fee $535 | New
Fee $820 | Increase $285 | 53%

Form I-131 | Travel Document (with biometrics) |
Current Fee $660 | New Fee $630 | Decrease $30 | -5%

Form I-131A | Carrier Documentation | Current Fee $575
| New Fee $575 | Difference $0 | No change

Form I-485 | Register Permanent Residence or Adjust
Status | Current Fee $1,225 | New Fee $1,540 | Increase $315 | 26%

Form I-751 | Remove Conditions of Residence (with
biometrics) | Current Fee $680 | New Fee $1,195 | Increase $515 | 76%
Form I-765 | Employment Authorization (with biometrics)
| Current Fee $495 | New Fee $650 | Increase $155 | 31%

Form N-400 | Naturalization (with biometrics) | Current
Fee $725 | New Fee $760 | Increase $35 | 5%

Form N-565 | Replacement Naturalization/Citizenship
Document) | Current Fee $555 | New Fee $555 | Difference $0 | No Change
Form N-600 | Certificate of Citizenship | Current Fee
$1,170 | New Fee $1,385 | Difference $215 | 18%

All proposed application fees listed include biometric services, if required. Some
of these applications offer a discounted fee for forms filed online.

Why are some proposed fees for the same form different for
online filing vs. paper filing?

The USCIS wants to encourage applicants to use online filing options, where
available, to improve the efficiency of the submission and adjudication process.
Paper filings have several disadvantages, including higher administrative costs to
the agency in receiving, storing, and handling applications. Furthermore,
information recorded on paper cannot be as effectively standardized or used for
fraud, national security, information sharing, and system integration purposes. The
USCIS has various forms available
for online filing
and case management.

When do the new immigration fees go into
effect?

Earlier this year, the DHS extended the comment period on the proposed USCIS rule to
mid-March 2023. The docket
now shows a final planned final action for 2024.

After reviewing public comments, DHS may modify the rule, resubmit for a further
public comment period, or publish a final rule with no further comments requested.
That could happen at any time, likely towards the end of 2023.

The DHS will set the effective date of new fees once the final rule is published.
Those who might be affected by the final fee rule should try to file their
applications before the end of 2023, as soon as possible.

FAQs on the USCIS fee increases

How much is the naturalization fee in 2023?

The current fee for naturalization (Form N-400) is $640, with a reduced-fee
application, available for specific circumstances, of $320. Those costs will remain
in effect until the new rule is final. The USCIS’ new proposal for Form N-400
(Application for Naturalization) is a fee of $760, with a reduced fee for specific
circumstances of $380. It’s important to note that in both cases the new fees
include biometric services.

When does the new filing fee go into effect?

While the rule is under review, it’s difficult to predict when the filing fees will
go into effect. However, the DHS has set a final action for 2024 in the docket.
Wherever possible, applicants should file before the end of 2023.

Helpful resources from the US federal
government

  • US Citizenship and Immigration Services Fee Schedule and
    Changes:
    Federal
    Register
  • Forms Available to File Online: USCIS
  • Proposed Fee Rule FAQs: USCIS

Further guidance on USCIS fee increases from Newland Chase

The proposed fee increases are intended to help the agency offset operational costs
and improve case processing times. However, the fee increase will significantly
affect I-485 applicants, family-based immigrant visa petitions, businesses, and
others, making it more expensive for individuals and families to pursue immigration
benefits in the United States.

If you may be affected by the future fee structure, now is the time to file the
necessary paperwork and avoid higher costs. Contact Newland Chase’s
experts for guidance
tailored to your organizational or personal
requirements.

This immigration update is for informational purposes only and
is not a substitute for legal or scenario-specific advice. Furthermore, it is
important to note that immigration announcements are subject to sudden and
unexpected changes. Readers are encouraged to reach out to Newland Chase for any
case- or company-specific assessments.